SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934



For the month of
October
 
2019

Commission File Number
001-37400
 
 

 Shopify Inc.
(Translation of registrant’s name into English)

150 Elgin Street, 8th Floor
Ottawa, Ontario, Canada K2P 1L4
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:


Form 20-F
 

Form 40-F
x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):          

         Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):           
















DOCUMENTS INCLUDED AS PART OF THIS REPORT

Exhibit


99.1    Shopify Inc. - Shopify Announces Third-Quarter 2019 Financial Results





















































SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



 
Shopify Inc.
 
(Registrant)
Date:
 
October 29, 2019
 
By:
/s/ Joseph A. Frasca
 
Name: Joseph A. Frasca
Title: Chief Legal Officer and Corporate Secretary



Exhibit


EXHIBIT 99.1

Shopify Announces Third-Quarter 2019 Financial Results
Third-Quarter Revenue Grows 45% Year on Year
Shopify Now Powers Over One Million Merchants Worldwide

Shopify reports in U.S. dollars and in accordance with U.S. GAAP

Ottawa, Canada - October 29, 2019 - Shopify Inc. (NYSE:SHOP)(TSX:SHOP), a leading global commerce company, today announced strong financial results for the quarter ended September 30, 2019.

“More than a million merchants are now building their businesses on Shopify, as more entrepreneurs around the world reach for independence,” said Tobi Lütke, Shopify’s CEO. “These merchants chose Shopify because we’re making entrepreneurship easier, and we will continue to level the playing field to help merchants everywhere succeed.”

“Our strong results in the quarter were driven in part by the success of our international expansion, which is just one of the many ways we are investing in the platform,” said Amy Shapero, Shopify’s CFO. “By carefully balancing these multiple opportunities that have different investment time horizons, we can keep investing in the innovations that will power merchants in the future while helping them grow rapidly today.”

Third-Quarter Financial Highlights
•
Total revenue in the third quarter was $390.6 million, a 45% increase from the comparable quarter in 2018.
•
Subscription Solutions revenue grew 37% to $165.6 million. This increase was driven primarily by growth in Monthly Recurring Revenue1 ("MRR"), largely due to an increase in the number of merchants joining the Shopify platform.
•
Merchant Solutions revenue grew 50%, to $225.0 million, driven primarily by the growth of Gross Merchandise Volume2 ("GMV").
•
MRR as of September 30, 2019 was $50.7 million, up 34% compared with $37.9 million as of September 30, 2018. Shopify Plus contributed $13.5 million, or 27%, of MRR compared with 24% of MRR as of September 30, 2018.

1. Monthly Recurring Revenue, or MRR, is calculated by multiplying the number of merchants by the average monthly subscription plan fee in effect on the last day of that period and is used by management as a directional indicator of subscription solutions revenue going forward assuming merchants maintain their subscription plan the following month.
2.Gross Merchandise Volume, or GMV, represents the total dollar value of orders processed on the Shopify platform in the period, net of refunds, and inclusive of shipping and handling, duty and value-added taxes.










•
GMV for the third quarter was $14.8 billion, an increase of $4.8 billion, or 48%, over the third quarter of 2018. Gross Payments Volume3 ("GPV") grew to $6.2 billion, which accounted for 42% of GMV processed in the quarter, versus $4.1 billion, or 41%, for the third quarter of 2018.
•
Gross profit dollars grew 45%, to $216.7 million, compared with $149.7 million recorded for the third quarter of 2018.
•
Operating loss for the third quarter of 2019 was $35.7 million, or 9% of revenue, versus a loss of $31.4 million, or 12% of revenue, for the comparable period a year ago.
•
Adjusted operating income4 for the third quarter of 2019 was 3% of revenue, or $10.5 million; adjusted operating loss for the third quarter of 2018 was 1% of revenue, or $2.4 million.
•
Net loss for the third quarter of 2019 was $72.8 million, or $0.64 per share, compared with $23.2 million, or $0.22 per share, for the third quarter of 2018. Net loss for the third quarter of 2019 includes a tax provision of $48.3 million. This provision is primarily due to a one-time capital gain triggered by the transfer of regional relationship and territory rights from our Canadian entity to regional headquarters, which allows us to develop and maintain merchant and commercial operations in their respective regions as we expand internationally.
•
Adjusted net loss4 for the third quarter of 2019 was $33.6 million, or $0.29 per share, compared with adjusted net income of $5.8 million, or $0.05 per share, for the third quarter of 2018.
•
At September 30, 2019, Shopify had $2.67 billion in cash, cash equivalents and marketable securities, compared with $1.97 billion on December 31, 2018. The increase reflects $688.0 million of net proceeds from Shopify’s offering of Class A subordinate voting shares in the third quarter of 2019.

Third-Quarter Business Highlights
In the third quarter, Shopify continued to build for the long term by lowering the barriers to entry for entrepreneurship, extending the functionality of the platform for merchants, and enriching our offering as a global commerce operating system:
•
Shopify surpassed one million merchants worldwide on our platform, hitting a major milestone and reflecting the continued expansion of Shopify’s global community of entrepreneurs.
•
Shopify Fulfillment Network continued to lay the foundation for timely and affordable direct-to-consumer fulfillment for merchants that value their brands and customer experience. With strong interest from merchants, we will continue to add select merchants and partners as we focus on high performance and optimize for the merchant experience.
•
Shopify announced availability for merchants in most U.S. states to start selling hemp or hemp-derived cannabidiol (CBD) products on our platform, both online or in brick-and-mortar retail locations.
•
Shopify launched the Shopify Sustainability Fund, which commits at least $5 million annually to invest in areas like carbon sequestration,  neutralizing our carbon footprint, sustainable packaging, and enabling our merchants and their buyers to participate.

3. Gross Payments Volume, or GPV, is the amount of GMV processed through Shopify Payments.
4. Non-GAAP financial measures exclude the effect of stock-based compensation expenses and related payroll taxes as well as amortization of acquired intangibles and related taxes. Please refer to "Non-GAAP Financial Measures" in this press release for more information.


•
Shopify launched Shopify Chat, our first native chat function that allows merchants to have real-time conversations with customers visiting their stores and provide a better shopping experience.
•
Shopify launched native language capabilities in Turkish, bringing the total number of languages in which the Shopify Admin is available to 19.
•
Shopify launched Shopify Payments in Italy, expanding the availability of Shopify Payments to 14 countries.
•
Shopify Shipping adoption continued to expand, with approximately 44% of eligible merchants in the United States and Canada using Shopify Shipping in the quarter.
•
Purchases from merchants’ stores coming from mobile devices versus desktop continued to climb in the quarter, accounting for nearly 81% of traffic and 71% of orders for the three months ended September 30, 2019, versus 77% and 67%, respectively, for the third quarter of 2018.
•
Shopify Capital issued $141.0 million in merchant cash advances and loans in the third quarter of 2019, an increase of 85% versus the $76.4 million issued in the third quarter of last year. Shopify Capital has grown to approximately $768.9 million in cumulative cash advanced since its launch in April 2016 through the third quarter of 2019, approximately $166 million of which was outstanding on September 30, 2019.

Subsequent to the close of our third quarter, Shopify completed the acquisition of 6 River Systems, Inc., a leading provider of collaborative warehouse fulfillment solutions.

Financial Outlook
The financial outlook that follows constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond Shopify’s control. Please see "Forward-looking Statements" below.

In addition to the other assumptions and factors described in this press release, Shopify’s outlook assumes the continuation of growth trends in our industry, our ability to manage our growth effectively and the absence of material changes in our industry or the global economy. The following statements supersede all prior statements made by Shopify and are based on current expectations. As these statements are forward-looking, actual results may differ materially.

These statements do not give effect to the potential impact of mergers, acquisitions, divestitures or business combinations that may be announced or closed after the date hereof. All numbers provided in this section are approximate.

For the full year 2019, Shopify currently expects:
•
Revenues in the range of $1.545 billion to $1.555 billion
•
GAAP operating loss in the range of $158 million to $168 million


•
Adjusted operating income4 in the range of $27 million to $37 million, which excludes stock-based compensation expenses and related payroll taxes of $180 million, and amortization of acquired intangibles of $15 million

For the fourth quarter of 2019, Shopify currently expects:
•
Revenues in the range of $472 million to $482 million
•
GAAP operating loss in the range of $47 million to $57 million
•
Adjusted operating income4 in the range of $10 million to $20 million, which excludes stock-based compensation expenses and related payroll taxes of $57 million, and amortization of acquired intangibles of $10 million

Quarterly Conference Call
Shopify’s management team will hold a conference call to discuss our third-quarter results today, October 29, 2019, at 8:30 a.m. ET. The conference call will be webcast on the investor relations section of Shopify’s website at https://investors.shopify.com/events/Events-Presentations/default.aspx. An archived replay of the webcast will be available following the conclusion of the call.

Shopify’s Third-Quarter 2019 Interim Unaudited Condensed Consolidated Financial Statements and Notes and its Third-Quarter 2019 Management’s Discussion and Analysis are available on Shopify’s website at www.shopify.com, and will be filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

About Shopify
Shopify is a leading global commerce company, providing trusted tools to start, grow, market, and manage a retail business of any size. Shopify makes commerce better for everyone with a platform and services that are engineered for reliability, while delivering a better shopping experience for consumers everywhere. Headquartered in Ottawa, Canada, Shopify powers over one million businesses in more than 175 countries and is trusted by brands such as Allbirds, Gymshark, PepsiCo, Staples and many more. For more information, visit www.shopify.com.

Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with United States generally accepted accounting principles (GAAP), Shopify uses certain non-GAAP financial measures to provide additional information in order to assist investors in understanding our financial and operating performance.

Adjusted operating income (loss), non-GAAP operating expenses, adjusted net income (loss) and adjusted net income (loss) per share are non-GAAP financial measures that exclude the effect of stock-based compensation expenses and related payroll taxes and amortization of acquired intangibles and related taxes.



Management uses non-GAAP financial measures internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Shopify believes that these non-GAAP measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. Non-GAAP financial measures are not recognized measures for financial statement presentation under U.S. GAAP and do not have standardized meanings, and may not be comparable to similar measures presented by other public companies. Such non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. See the financial tables below for a reconciliation of the non-GAAP measures.

Forward-looking Statements
This press release contains certain forward-looking statements within the meaning of applicable securities laws, including statements regarding Shopify’s financial outlook and future financial performance. Words such as "expects", "continue", "keep", "will", "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements.

These forward-looking statements are based on Shopify’s current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by Shopify in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate. These projections, expectations, assumptions and analyses are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause actual results, performance, events and achievements to differ materially from those anticipated in these forward-looking statements. Although Shopify believes that the assumptions underlying these forward-looking statements are reasonable, they may prove to be incorrect, and readers cannot be assured that actual results will be consistent with these forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements as a result of numerous factors, including certain risk factors, many of which are beyond Shopify’s control, including but not limited to: (i) merchant acquisition and retention; (ii) managing our growth; (iii) our history of losses; (iv) our limited operating history; (v) our ability to innovate; (vi) a disruption of service or security breach; (vii) payments processed through Shopify Payments; (viii) our reliance on a single supplier to provide the technology we offer through Shopify Payments; (ix) the security of personal information we store relating to merchants and their customers, and consumers with whom we have a direct relationship; (x) evolving privacy laws and regulations, cross-border data transfer restrictions, data localization requirements and other domestic or foreign regulations; (xi) our potential inability to hire, retain and motivate qualified personnel; (xii) international sales and the use of our platform in various countries; and (xiii) other one-time events and other important factors disclosed previously and from time to time in Shopify’s filings with the U.S. Securities and Exchange Commission and the securities commissions or similar securities regulatory authorities in each of the provinces or territories of Canada. The forward-looking statements contained in this news release represent Shopify’s expectations


as of the date of this news release, or as of the date they are otherwise stated to be made, and subsequent events may cause these expectations to change. Shopify undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

CONTACT:
 
 
INVESTORS:
 
MEDIA:
Katie Keita
 
Julie Nicholson
Senior Director, Investor Relations
 
Director of Communications
613-241-2828 x 1024
 
416-238-6705 x 302
IR@shopify.com
 
press@shopify.com
SOURCE: Shopify
 
 




Shopify Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Expressed in US $000’s, except share and per share amounts, unaudited)


 
Three months ended
 
Nine months ended
 
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
 
$
 
$
 
$
 
$
Revenues
 
 
 
 
 
 
 
Subscription solutions
165,577

 
120,517

 
459,075

 
331,436

Merchant solutions
224,975

 
149,547

 
613,938

 
397,931

 
390,552

 
270,064

 
1,073,013

 
729,367

Cost of revenues
 
 
 
 
 
 
 
Subscription solutions
33,263

 
26,600

 
90,786

 
74,284

Merchant solutions
140,593

 
93,737

 
380,475

 
244,559

 
173,856

 
120,337

 
471,261

 
318,843

Gross profit
216,696

 
149,727

 
601,752

 
410,524

Operating expenses
 
 
 
 
 
 
 
Sales and marketing
116,546

 
91,635

 
340,778

 
254,906

Research and development
90,387

 
61,629

 
252,262

 
163,650

General and administrative
45,421

 
27,831

 
119,780

 
74,430

Total operating expenses
252,354

 
181,095

 
712,820

 
492,986

Loss from operations
(35,658
)
 
(31,368
)
 
(111,068
)
 
(82,462)

 
 
 
 
 
 
 
 
Other income
11,212

 
8,184

 
33,793

 
19,423

Loss before income taxes
(24,446
)
 
(23,184
)
 
(77,275
)
 
(63,039)

Provision for income taxes
48,338

 
—

 
48,338

 
—

Net loss
(72,784
)
 
(23,184
)
 
(125,613)

 
(63,039)

Other comprehensive income (loss)
(6,097
)
 
6,101

 
9,923

 
(5,131
)
Comprehensive loss
(78,881
)
 
(17,083
)
 
(115,690
)
 
(68,170)

Basic and diluted net loss per share attributable to shareholders
(0.64
)
 
(0.22
)
 
(1.12
)
 
(0.60
)
Weighted average shares used to compute basic and diluted net loss per share attributable to shareholders
113,086,997

 
106,647,222

 
112,015,160

 
104,976,730




Shopify Inc.
Condensed Consolidated Balance Sheets
(Expressed in US $000’s except share amounts, unaudited)

 
As at
 
September 30, 2019
 
December 31, 2018
 
$
 
$
Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
1,124,529

 
410,683

Marketable securities
1,542,653

 
1,558,987

Trade and other receivables, net
46,691

 
41,347

Merchant cash advances and loans receivable, net
165,775

 
91,873

Other current assets
31,184

 
26,192

 
2,910,832

 
2,129,082

Long-term assets
 
 
 
Property and equipment, net
92,141

 
61,612

Intangible assets, net
24,759

 
26,072

Right-of-use assets
96,788

 
—

Deferred tax assets
16,040

 
—

Goodwill
48,375

 
38,019

 
278,103

 
125,703

Total assets
3,188,935

 
2,254,785

Liabilities and shareholders’ equity
 
 
 
Current liabilities
 
 
 
Accounts payable and accrued liabilities
139,330

 
96,956

Income taxes payable
66,617

 
—

Deferred revenue
48,368

 
39,180

Lease liabilities
5,426

 
2,552

 
259,741

 
138,688

Long-term liabilities
 
 
 
Deferred revenue
2,115

 
1,881

Lease liabilities
105,595

 
22,316

Deferred tax liability
1,425

 
1,132

 
109,135

 
25,329

Commitments and contingencies
 
 
 
Shareholders’ equity
 
 
 
Common stock, unlimited Class A subordinate voting shares authorized, 103,106,023 and 98,081,889 issued and outstanding; unlimited Class B multiple voting shares authorized, 12,237,278 and 12,310,800 issued and outstanding
3,042,555

 
2,215,936

Additional paid-in capital
84,792

 
74,805

Accumulated other comprehensive income (loss)
(2,293
)
 
(12,216
)
Accumulated deficit
(304,995
)
 
(187,757
)
Total shareholders’ equity
2,820,059

 
2,090,768

Total liabilities and shareholders’ equity
3,188,935

 
2,254,785




Shopify Inc.
Condensed Consolidated Statements of Cash Flows
(Expressed in US $000’s, unaudited)



 
 
Nine months ended
 
 
September 30, 2019
 
September 30, 2018
 
 
$
 
$
Cash flows from operating activities
 
 
 
 
Net loss for the period
 
(125,613)

 
(63,039)

Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
Amortization and depreciation
 
22,950

 
21,204

Stock-based compensation
 
110,464

 
68,301

Provision for uncollectible receivables related to merchant cash advances and loans receivable
 
10,967

 
5,043

Deferred income taxes
 
(15,295)

 
—

Unrealized foreign exchange loss
 
2,404

 
637

Changes in operating assets and liabilities:
 
 
 
 
Trade and other receivables
 
(25,153)

 
(22,524)

Merchant cash advances and loans receivable
 
(84,869)

 
(57,460)

Other current assets
 
(3,139)

 
(8,255)

Accounts payable and accrued liabilities
 
53,885

 
44,203

Income tax assets and liabilities
 
61,485

 
—

Deferred revenue
 
9,029

 
6,685

Lease assets and liabilities
 
612

 
5,272

Net cash provided by operating activities
 
17,727

 
67

Cash flows from investing activities
 
 
 
 
Purchase of marketable securities
 
(2,003,102)

 
(1,689,553)

Maturity of marketable securities
 
2,034,933

 
1,160,003

Acquisitions of property and equipment
 
(43,357)

 
(20,432)

Acquisitions of intangible assets
 
(5,484)

 
(12,328)

Acquisition of businesses, net of cash acquired
 
(12,476)

 
(3,718
)
Net cash used by investing activities
 
(29,486)

 
(566,028)

Cash flows from financing activities
 
 
 
 
Proceeds from the exercise of stock options
 
37,301

 
22,273

Proceeds from public offering, net of issuance costs
 
688,014

 
646,984

Net cash provided by financing activities
 
725,315

 
669,257

Effect of foreign exchange on cash and cash equivalents
 
290

 
(1,552)

Net increase in cash and cash equivalents
 
713,846

 
101,744

Cash and cash equivalents – Beginning of Period
 
410,683

 
141,677

Cash and cash equivalents – End of Period
 
1,124,529

 
243,421



Shopify Inc.
Reconciliation from GAAP to Non-GAAP Results
(Expressed in US $000’s, except share and per share amounts, unaudited)


 
Three months ended
 
Nine months ended
 
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
 
$
 
$
 
$
 
$
GAAP Gross profit
216,696

 
149,727

 
601,752

 
410,524

% of Revenue
55
%
 
55
%
 
56
%
 
56
%
add: stock-based compensation
928

 
618

 
2,536

 
1,628

add: payroll taxes related to stock-based compensation
113

 
37

 
345

 
153

Non-GAAP Gross profit (before adjustment for amortization of acquired intangibles)
217,737

 
150,382

 
604,633

 
412,305

% of Revenue
56
%
 
56
%
 
56
%
 
57
%
add: amortization of acquired intangibles
1,707

 
1,241

 
4,978

 
3,467

Non-GAAP Gross profit (adjusted for amortization of acquired intangibles)
219,444

 
151,623

 
609,611

 
415,772

% of Revenue
56
%
 
56
%
 
57
%
 
57
%
 
 
 
 
 
 
 
 
GAAP Sales and marketing
116,546

 
91,635

 
340,778

 
254,906

% of Revenue
30
%
 
34
%
 
32
%
 
35
%
less: stock-based compensation
8,707

 
6,015

 
23,951

 
15,775

less: payroll taxes related to stock-based compensation
985

 
382

 
2,897

 
1,640

Non-GAAP Sales and marketing
106,854

 
85,238

 
313,930

 
237,491

% of Revenue
27
%
 
32
%
 
29
%
 
33
%
 
 
 
 
 
 
 
 
GAAP Research and development
90,387

 
61,629

 
252,262

 
163,650

% of Revenue
23
%
 
23
%
 
24
%
 
22
%
less: stock-based compensation
23,136

 
14,719

 
64,234

 
39,223

less: payroll taxes related to stock-based compensation
2,777

 
950

 
8,050

 
3,583

Non-GAAP Research and development
64,474

 
45,960

 
179,978

 
120,844

% of Revenue
17
%
 
17
%
 
17
%
 
17
%




Shopify Inc.
Reconciliation from GAAP to Non-GAAP Results (continued)
(Expressed in US $000’s, except share and per share amounts, unaudited)


 
Three months ended
 
Nine months ended
 
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
 
$
 
$
 
$
 
$
GAAP General and administrative
45,421

 
27,831

 
119,780

 
74,430

% of Revenue
12
 %
 
10
 %
 
11
 %
 
10
 %
less: stock-based compensation
7,261

 
4,833

 
19,743

 
11,675

less: payroll taxes related to stock-based compensation
592

 
174

 
1,585

 
659

Non-GAAP General and administrative
37,568

 
22,824

 
98,452

 
62,096

% of Revenue
10
 %
 
8
 %
 
9
 %
 
9
 %
 
 
 
 
 
 
 
 
GAAP Operating expenses
252,354

 
181,095

 
712,820

 
492,986

% of Revenue
65
 %
 
67
 %
 
66
 %
 
68
 %
less: stock-based compensation
39,104

 
25,567

 
107,928

 
66,673

less: payroll taxes related to stock-based compensation
4,354

 
1,506

 
12,532

 
5,882

Non-GAAP Operating expenses
208,896

 
154,022

 
592,360

 
420,431

% of Revenue
53
 %
 
57
 %
 
55
 %
 
58
 %
 
 
 
 
 
 
 
 
GAAP Operating loss
(35,658
)
 
(31,368
)
 
(111,068
)
 
(82,462
)
% of Revenue
(9
)%
 
(12
)%
 
(10
)%
 
(11
)%
add: stock-based compensation
40,032

 
26,185

 
110,464

 
68,301

add: payroll taxes related to stock-based compensation
4,467

 
1,543

 
12,877

 
6,035

Adjusted Operating income (loss) (before adjustment for amortization of acquired intangibles)
8,841

 
(3,640
)
 
12,273

 
(8,126
)
% of Revenue
2
 %
 
(1
)%
 
1
 %
 
(1
)%
add: amortization of acquired intangibles
1,707

 
1,241

 
4,978

 
3,467

Adjusted Operating income (loss) (adjusted for amortization of acquired intangibles)
10,548

 
(2,399
)
 
17,251

 
(4,659
)
% of Revenue
3
 %
 
(1
)%
 
2
 %
 
(1
)%





Shopify Inc.
Reconciliation from GAAP to Non-GAAP Results (continued)
(Expressed in US $000’s, except share and per share amounts, unaudited)


 
Three months ended
 
Nine months ended
 
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
 
$
 
$
 
$
 
$
GAAP Net loss
(72,784
)
 
(23,184
)
 
(125,613
)
 
(63,039
)
% of Revenue
(19
)%
 
(9
)%
 
(12
)%
 
(9
)%
add: stock-based compensation
40,032

 
26,185

 
110,464

 
68,301

add: payroll taxes related to stock-based compensation
4,467

 
1,543

 
12,877

 
6,035

Adjusted Net income (loss) (before adjustments for amortization of acquired intangibles and provision for income tax effects)
(28,285
)
 
4,544

 
(2,272
)
 
11,297

% of Revenue
(7
)%
 
2
 %
 
—
 %
 
2
 %
add: amortization of acquired intangibles
1,707

 
1,241

 
4,978

 
3,467

add: provision for income tax effects related to non-GAAP adjustments
(7,018
)
 
—

 
(18,471
)
 
—

Adjusted Net income (loss) (adjusted for amortization of acquired intangibles and provision for income tax effects)
(33,596
)
 
5,785

 
(15,765
)
 
14,764

% of Revenue
(9
)%
 
2
 %
 
(1
)%
 
2
 %
 
 
 
 
 
 
 
 
GAAP Net loss per share attributable to shareholders
(0.64
)
 
(0.22
)
 
(1.12
)
 
(0.60
)
add: stock-based compensation
0.35

 
0.25

 
0.99

 
0.65

add: payroll taxes related to stock-based compensation
0.04

 
0.01

 
0.11

 
0.06

Adjusted Net income (loss) per share attributable to shareholders (before adjustments for amortization of acquired intangibles and provision for income tax effects)
(0.25
)
 
0.04

 
(0.02
)
 
0.11

add: amortization of acquired intangibles
0.02

 
0.01

 
0.04

 
0.03

add: provision for income tax effects related to non-GAAP adjustments
(0.06
)
 
—

 
(0.16
)
 
—

Adjusted Net income (loss) per share attributable to shareholders (adjusted for amortization of acquired intangibles and provision for income tax effects)
(0.29
)
 
0.05

 
(0.14
)
 
0.14

Weighted average shares used to compute GAAP and non-GAAP net income (loss) per share attributable to shareholders
113,086,997

 
106,647,222

 
112,015,160

 
104,976,730